Exam 11: Issues of Reporting, Disclosure, and Financial Analysis

Public colleges and universities must adhere to the same GASB pronouncements as other types of governments.

What are four types of information that must be presented in Management's Discussion and Analysis (MD&A)? From which financial statement, if any, is each type of information derived?

A county commission appoints a voting majority of the members of the board of a particular organization.The county commission cannot impose its will upon the organization.There is no potential for the organization to provide any financial benefit to the county nor is there any potential for the organization to impose any financial burden on the county.The organization is an example of a(n):

Eland City Council has adopted a policy of aggressively pursuing grants and other resource inflows from other levels of government.Over the past several years, the proportion of total city revenues that comes from other levels of government has steadily increased.As a consequence of these increased revenues, the city has begun offering a number of new services to citizens.In assessing the financial condition of the city, an analyst would conclude which of the following?

The city created a legally separate entity to operate a county hospital.The city council appoints a voting majority of the board of the hospital.The city cannot impose its will on the hospital and there is no potential for a financial benefit or financial burden to the city.The county hospital would be a(n)

Which of the following is NOT a primary government?

The State University Foundation is a legally separate, tax-exempt 501(c)(3)entity organized for the purpose of raising funds to provide scholarships only to academically qualified students at the State University.The existing university foundation board members elect new members of the board.The foundation provides scholarships to students of the State University, but the foundation receives no financial support from the university.The Foundation is an example of:

The Friends of the City Public Library Foundation is a legally separate, tax-exempt 501(c)(3)entity organized for the purpose of raising funds to provide financial assistance to the library.Members of the board of the foundation are elected by the existing foundation board members.The foundation provides financial assistance to the library, but the foundation receives no financial support from the library.If dissolved, all of the foundation assets would revert to the library.In what manner should the foundation be presented in the financial statements of the library?